As research by Deloitte points out, pricing is the most powerful profit lever available to a business today by a factor of two to five times.
McKinsey also did significant research (of over 1,000 companies) showing that companies who feel they control their prices have a stock valuation twice that of companies who feel they don’t control their prices.
These points are dealt with in some detail in our white paper, “A 5-Step Process to Double the Value of Your Company through Value-Based Pricing”, which lays out a process for controlling prices.
As placements we have made demonstrate, the professionals you hire to manage pricing can generate remarkable results.
An individual we placed at a packaging company was able to effect annual price increases if over one percent, which added over $100 million to the bottom line and resulted in this company’s stock price more than tripling.
Beyond pricing, it’s possible for the right hire to achieve other process improvements that will add to the bottom line.
Below is one example:
One of our clients cut the average time to respond to RFPs (Requests for Proposal) by more than 50% and increased their “win rate” by 10% at a more profitable level.
We would be happy to talk to you about how you can begin to take more control of pricing and profits.